Pages

Friday, 26 October 2018

Alaska Air Group's Third Quarter Results

Alaska Air Group Reports Third Quarter 2018 results

Alaska Air Group, reported third-quarter 2018 GAAP net income of $217 million, or $1.75 per diluted share, compared to $259 million, or $2.09 per diluted share in the third quarter of 2017. Excluding the impact of merger-related costs and mark-to-market fuel hedge adjustments, the company reported adjusted net income of $237 million, or $1.91 per diluted share, compared to $270 million, or $2.18 per diluted share, in 2017.

"In the nearly two years since our merger closed, we've now completed approximately 90% of our integration milestones," said Alaska CEO Brad Tilden. "With that work now behind us, we are doubling down on what we do best - keeping fares low, delivering leading operational performance and offering top-rated customer service. The recent recognition by Condé Nast Traveler shows what our people can accomplish when we focus on what's most important and pull together as one team."

The following table reconciles the company's reported GAAP net income and earnings per diluted share (Diluted EPS) for the three and nine months ended Sept. 30 2018, and 2017 to adjusted amounts.

Financial Highlights:

Reported net income for the third quarter under Generally Accepted Accounting Principles (GAAP) of $217 million, or $1.75 per diluted share, compared to net income of $259 million, or $2.09 per diluted share in the third quarter of 2017. As the company has recently implemented new accounting standards, including the standards relating to revenue recognition and retirement benefits, 2017 financial information has been adjusted.

Reported net income for the third quarter, excluding special items such as merger-related costs and mark-to-market fuel hedge accounting adjustments, of $237 million, or $1.91 per diluted share, compared to $270 million or $2.18 per diluted share, in the third quarter of 2017. This quarter's adjusted results compare to the First Call analyst consensus estimate of $1.81 per share.

Paid a $0.32 per-share quarterly cash dividend in the third quarter, a 7% increase over the dividend paid in the third quarter of 2017.

Repurchased a total of 582,942 shares of common stock for approximately $37 million in the first nine months of 2018.

Generated approximately $1 billion of operating cash flow in the first nine months of 2018, including merger-related costs and other special items.

Held $1.4 billion in unrestricted cash and marketable securities as of Sept. 30, 2018.

Reduced debt-to-capitalization ratio to 49% as of Sept. 30, 2018, compared to 53% as of Dec. 31, 2017, and down from 59% immediately following our acquisition of Virgin America. Reduced long-term debt balance to $1.7 billion as of Sept. 30, 2018 from $2.6 billion as of Dec. 31, 2016.

Translate

Follow us on twitter

Like us on facebook

Air101

Search our site

Search the web

Meet the team

Jason Shaw.

Jason Shaw's love of the aviation industry started at a young age when he used to watch the whirlybirds of Bristow Helicopters coming and going from the garden of his Surrey childhood home. Since those days he's worked in a number of key areas within the aviation industry from airlines, travel agents, holiday companies and product selection to reporting on it for local radio and making video travel brochures.

Jason is also an experienced broadcaster, having presented on radio, television, corporate videos and video travel brochures. He's an avid writer and written a number of books, articles, features and reports. He also loves to travel and his favourite destinations include Port Douglas, Singapore and Copenhagen.

Joshua Jordan.

Josh loves to travel and has a passionate interest in the airline industry. He's worked in both travel and the media for a number of years. His voice can often be heard on Internet-based radio stations as well and the odd commercial! The destination he calls his favourite is - New York.

Adam Shaw

Adam is the youngest member of the team, no relation to Jason and like the rest of the team, he has a keen interest in airlines, aircraft and aviation. His favourite destination is Prague and has just started taking flying lessons.